“There will be control. You’re right. You’re completely right. We are considering whether for very small amounts, you know, anything that is around 300, 400 €, we could have a mechanism where there is zero control. But that could be dangerous…
Brace For Buyback Tsunami Following Record Flood Of Corporate Bond Issuance…
While traders were focused on today’s ECB meeting and the (spectacular) 30Y auction which initially pushed yields higher on supply concerns only to see them slide right back down after the huge buyside demand for ultra-long dated paper, the real action was in corporate bond land where the last few days have seen an unprecedented borrowing binge…
Here We Go: Fed “Finds” That Negative Rates Would Have Helped the Recovery
Several days ago, the ECB sparked the ire of pretty much anyone with a working frontal lobe when it made the indefensible claim that, drumroll, QE had helped reduce inequality. ECB asset purchases have reduced inequality in the eurozone, our research shows. They have especially benefited low-income households, which suffer the most from unemployment. That’s […]
NY Fed Unleashes SOFR, the U.S. Rival to LIBOR…
In an effort to offer a more transparent alternative to U.S. dollar Libor, the New York Federal Reserve released its first Secured Overnight Financing Rate (SOFR) Tuesday. SOFR opened at 1.80. Considerably lower than either the ICE Libor 1 month or 3 month rates. The Secured Overnight Financing Rate (SOFR) is a broad measure of […]
My Kuroda! Not a Single Japanese 10-Year Bond Traded Tuesday…
The Bank of Japan has vacuumed up so much of the government bond market — in excess of 40 percent — that it’s left fewer securities for others to buy and sell. Some other buyers, such as pension funds and life insurers, also tend to follow buy-and-hold strategies. That’s the backdrop to Tuesday’s session, when […]
My Political-Financial Road Map for 2017 by Nomi Prins…
The central bank subsidization of the financial system (especially in the US and Europe) that began with the Fed invoking zero interest rate policy in 2008, gave way to international distrust of the enabling status quo that unfolded in different ways across the planet. My prognosis is for more destabilization, financially and politically. In other […]
Italy Gets a New Prime Minister, But Not Yet a New Government, Let Alone a New Banking System…
The consequences of former Prime Minister’s Matteo Renzi’s failed referendum roll on. Italy now has a new Prime Minister, Paolo Gentiloni, who has been asked to form a new government. Assuming he can do so, one of his first tasks will be to rescue — however this is to be done — the “struggling” Italian […]